Dr. Mohammed Taek Kady, 55 from Chula Vista was arrested for operating a “complex, multi-level scheme” that bilked insurance companies by overcharging patients over $200,000 for examinations and prescription pain medication who did not need it.
Starting in 2007, Kady along with two employees were charged with California Penal Code Sections 182(a)(1), 182(a)(4), 487(a) and 550(b)(3) for their part in conspiring to commit medical insurance fraud.
In addition to the above mentioned charges, Kady was also charged with:
One count of Violation of California Welfare and Institutions Code section 14107(b)(4)(A)-Medi-Cal fraud.
Five counts of California Penal Code Section 487(a)- Grand Theft.
Seven counts of California Health and Safety Code section 11153(a)- Illegal Prescribing.
One count of Labor Code 3700.5(a)- Failing to provide worker’s compensation insurance.
Kady came to the authorities attention when a pharmacist at a San Diego pharmacy became suspicious when dozens of people tried to fill their prescriptions at the pharmacy. It turns out, that Kady and the pharmacy owner had an arrangement where Kady would send his patients to the particular pharmacy in exchange for a $3 per prescription kick back. Kady, who has been license since 1997 maintained clinics in Chula Vista and San Diego. If convicted, Kady faces up to 20 years in prison.